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Checkpoint Systems, Inc. (NYSE: CKP) announced restated financial
results for the first nine months of 2013 and fiscal years 2012 and
2011. The restated consolidated financial statements for the 2012 and
2011 fiscal years, as well as quarterly financial data for the first
three quarters of 2013 and all four quarters of 2012 are included in the
Company's Annual Report on Form 10-K for the fiscal year ended December
29, 2013, filed today with the Securities and Exchange Commission.

As previously announced, the restatement is the result of corrections
made for the combined effect of financial statement errors attributable
to the accounting for the future extension of sales-type lease
arrangements in Spain during the second quarter ended June 26, 2011, as
well as certain other previously disclosed out-of-period adjustments and
balance sheet reclassifications. This transaction was previously
reported in the Company's current report on Form 8-K filed on June 17,
2011. The Company assessed the impact of these errors on the prior
interim and annual financial statements and concluded that the combined
impact of these errors was material to these financial statements.

The restatement had no effect on the cash received from the transaction.
The restatement resulted from the identification of errors during the
review of our financial statements for the fourth quarter of 2013.
During fiscal 2016 through 2018, when we are permitted to recognize the
lease receivables upon the commencement of the lease extensions, we
expect to de-recognize both the associated receivables and the related
financing liability and record other operating income on the sale.

The restatement results in a reduction in net earnings for the first
nine months of 2013 by $2.0 million, a reduction in net earnings for
fiscal year 2012 by $0.6 million and a reduction in net earnings for
fiscal year 2011 by $16.9 million.

A summary of the Company's historical consolidated statement of
operations is as follows:

Nine Months Ended

Fiscal Year Ended

Fiscal Year Ended

September 29,

December 30,

December 25,

2013

2012

2011

As PreviouslyReported

As Restated

As PreviouslyReported

As Restated

As PreviouslyReported

As Restated

GAAP

Net revenues

$

495,319

$

495,351

$

690,789

$

689,920

$

763,749

$

758,400

Operating income (loss)

18,896

17,754

(120,461

)

(120,501

)

177

(22,001

)

Net earnings (loss)

(11,733

)

(13,781

)

(146,405

)

(146,979

)

(66,626

)

(83,561

)

Diluted earnings (loss) per share

(0.28

)

(0.33

)

(3.56

)

(3.57

)

(1.64

)

(2.06

)

Non-GAAP

Operating income (loss)

$

18,513

$

17,371

$

8,681

$

8,657

$

32,671

$

10,493

Net earnings (loss)

5,296

4,323

(10,630

)

(8,759

)

12,680

(3,571

)

Diluted earnings (loss) per share

0.13

0.10

(0.26

)

(0.22

)

0.31

(0.09

)

EBITDA

$

45,088

$

42,722

N/A

$

43,694

N/A

$

54,488

The Company's Form 10-K includes disclosure of a material weakness in
internal control over financial reporting and the Company's plans to
remediate the weakness.

Checkpoint Systems will host a conference call on April 1, 2014, at 8:30
a.m. Eastern Time, to discuss its fourth quarter 2013 results. The call
will be simultaneously broadcast live over the Internet. Listeners may
access a webcast of the call at http://ir.checkpointsystems.com.
A replay will be available following the event.

Checkpoint Systems, Inc.

Checkpoint Systems is a global leader in merchandise availability
solutions for the retail industry, encompassing loss prevention and
merchandise visibility. Checkpoint provides end-to-end solutions
enabling retailers to achieve accurate real-time inventory, accelerate
the replenishment cycle, prevent out-of-stocks and reduce theft, thus
improving merchandise availability and the shopper's experience.
Checkpoint's solutions are built upon 45 years of radio frequency
technology expertise, innovative high-theft and loss-prevention
solutions, market-leading RFID hardware, software, and comprehensive
labeling capabilities, to brand, secure and track merchandise from
source to shelf. Checkpoint's customers benefit from increased sales and
profits by implementing merchandise availability solutions, to ensure
the right merchandise is available at the right place and time when
consumers are ready to buy. For more information, visit www.checkpointsystems.com.

Caution Regarding Forward-Looking Statements

This press release includes information that constitutes
forward-looking statements. Forward-looking statements often address our
expected future business and financial performance, and often contain
words such as "expect," "anticipate," "intend," "plan," "believe,"
"seek," or "will." By their nature, forward-looking statements address
matters that are subject to risks and uncertainties. Any such
forward-looking statements may involve risk and uncertainties that could
cause actual results to differ materially from any future results
encompassed within the forward-looking statements. Factors that could
cause or contribute to such differences include: the review of the
Company's accounting and accounting policies, including matters relating
to the transaction previously reported in the Company's current report
on Form 8-K filed on June 17, 2011; the completion of the audit of
consolidated financial statements, new determinations and calculations;
additional time that may be required to complete the review and audit of
the Company's financial statements and its internal control over
financial reporting. Actual events or results may differ materially from
the Company's expectations. There can be no assurance that the review or
subsequent processes or filings will be timely completed, that any
modifications or changes can be timely or effectively implemented, that
errors or internal control deficiencies or weaknesses will not be
identified during the preparation and audit of the consolidated
financial statements nor that adjustments for other periods will not be
required. In addition, our financial results and stock price may suffer
as a result of this review and any subsequent determinations from this
process or any actions taken by governmental or other regulatory bodies
as a result of this process. Additional risks and uncertainties include
the risk that a failure to provide our annual audited financial
statements to our creditors on a timely basis could trigger a default
under the terms of our debt covenants with our creditors; the impact
upon operations of legal and compliance matters or internal controls
review, improvement and remediation, including the detection of
wrongdoing, improper activities, or circumvention of internal controls;
our ability to successfully implement our strategic plan; the impact of
our working capital improvement initiatives; our ability to manage
growth effectively including our ability to integrate acquisitions and
to achieve our financial and operational goals for our acquisitions; our
ability to manage risks associated with business divestitures; changes
in economic or international business conditions; foreign currency
exchange rate and interest rate fluctuations; lower than anticipated
demand by retailers and other customers for our products; slower
commitments of retail customers to chain-wide installations and/or
source tagging adoption or expansion; possible increases in per unit
product manufacturing costs due to less than full utilization of
manufacturing capacity as a result of slowing economic conditions or
other factors; our ability to provide and market innovative and
cost-effective products; the development of new competitive
technologies; our ability to maintain our intellectual property;
competitive pricing pressures causing profit erosion; the availability
and pricing of component parts and raw materials; possible increases in
the payment time for receivables as a result of economic conditions or
other market factors; our ability to comply with covenants and other
requirements of our debt agreements; changes in regulations or standards
applicable to our products; our ability to successfully implement global
cost reductions in operating expenses including, field service, sales,
and general and administrative expense, and our manufacturing and supply
chain operations without significantly impacting revenue and profits;
our ability to maintain effective internal control over financial
reporting; risks generally associated with information systems upgrades
and our company-wide implementation of an enterprise resource planning
(ERP) system and additional matters disclosed in our Securities and
Exchange Commission filings. We do not undertake to update our
forward-looking statements, except as required by applicable securities
laws.